How old you are selling!

"How old you are selling!" So says a senior businessman told me when we were breaking the fast together, and Ramadan. I stammered. Well, only this time there is saying that about my business model. But since he was far ... far ... far ... more experienced than me, with its business scale hundreds of times my efforts, I have no choice but to hear his criticism. I hold his breath waiting for the next sentence.

He added, "If you are IT business, told customers to buy products, it was business time". I began to understand. Because I have some customers who are using the patterns monthly payments or rent. Not to be outdone I immediately commented: "If the rent or pay a monthly fee how Sir?" He replied: "That's better. But it's also quite old now! "Well it makes me surprised again. "The ancient gak gimana dong sir?", I become curious. "The ancient gak gak that if customers have to pay!." I almost jumped out of his chair. Free? Must pay the salaries of employees from? He just laughed and laughed, making me more curious.

Like "Law of Attraction" working hard for me. Two weeks later I accidentally nemu new book by one of my favorite writers Chris Anderson, the title: "Free: The future of radical price". Yes, senior businessmen had been right! The future was there at zero price, aka free. Customers need not pay.

All About Free
It is undeniable, free virus was already spreading everywhere. We can now easily access the Internet at malls through a hot-spot infrastructure for free. I use a laptop with the Ubuntu Linux operating system distributed free by Canonical, typing with the OpenOffice word-processor which is provided free of charge by Sun Microsystems, using the free Firefox browser, using a free email service from Google, a free chat through Yahoo Messenger and access to such networks Facebook for free. In fact, if online was at the airport, the coffee was with me online for free, complimentary lounge sponsored by credit card issuers use my reply. Chris Anderson even typed his entire book through Google Docs application, word processing provided free online by Google.

Wait ... why is free only services related to the Internet? Oh no. Beyond that you also can easily find products or services free or very cheap. Not all are available in our country. Several years ago, if you want to install satellite dish antenna at home, we have to pay quite expensive. Parabolic antenna is now "loaned" by the TV broadcast service provider via satellite. Can we get the modem for free if you subscribe to broadband. Almost all credit card issuers already eliminate its annual fee. Low cost airlines have revolutionized and pioneered the sale of airline tickets very cheap or even free. In developed countries, this free product list more and more. You can have a phone for free, of course with a particular subscription contract. Have a free laptop with broadband access subscription. In short there are versions of all its free, free car even exists. If a free magazine was very ordinary, in Tokyo, even a shop that provides 5 free items for every visitors, ranging from candles, instant noodles, to face creams.

Free Lunch Yes (Once) There
You've heard the expression "there is no free lunch". The phrase actually comes from the Cowboy era in the United States. At that time many Saloon, where the Americans hang out earlier times, which provides free lunches to attract visitors. Lunch was really free. But visitors have to pay expensive for others, such as drinks, casino games, rent, etc..
For a free-for products also originally performed by King Gillette, the creator of the first razor in the world. Ancient man with a razor blade to shave as much that is not practical, must be used in refining, etc.. The idea of using super-thin razor that does not need to be sharpened, but discarded if it is dull, is a new idea at first hard to understand. Gillette also distributed for free as a marketing gimmick other products, with the hope of new users who liked this idea further to buy. For example in cooperation with the bank, Gillette made a new knife bonus for opening a savings account. And Gillette was right, eventually known as Gillette razors and then worldwide to this day.

Jell-O, the most popular dessert in the United States also initially difficult to sell. Peter Cooper, inventor of the gelatin diet was difficult to introduce its new product. Only after these products are marketed by the marketing genius and orator Francis Woodward, Jell-O to find his place in the market. Woodward was not distribute this product for free. However, print and distribute a free recipe book to give ideas to prospective customers, that Jell-O is very practical and can be served with many variations. Woodward to buy Jell-O license for only $ 450 a huge success.

To the abundance of scarcity
Free model a la Saloon, Gillette and Jell-O is the free models of the last century, which until now still used. However, the age of 21 has created a new free business model. Business model driven by convenience and technology.

Plastics was originally designed as an exclusive product. Research and expensive production costs. Plastic is also much stronger and durable compared to wood. So should the product have sold expensive than plastic. However, we see today, plastic is so abundant everywhere. Plastic eventually become commodities that are abundant and cheap.

Modern electronic goods grew rapidly after the transistor was found. At first transistor is an expensive rare item. In 1961 the price of fruit transistor 1 is $ 10. Less than 10 years it has lived price $ 1 cents. And today, a microchip which is equivalent to 2 billion transistors sold only $ 300, or 0.000015 cents per transistor. The same thing happened also to the capacity of disk storage and bandwidth, which is becoming increasingly expensive. This is then triggered the digital revolution is changing the way employers view in the search for revenue.

When a product has become a commodity that "too cheap to be appreciated", then we no longer can rely on product prices as a source of our revenue. Price is related to scarcity, while we face is abundance.

Free? Where Does the Money?
Running the business is still to profit-oriented, the source is revenue minus cost. Free business model is basically doing creative revenue sources, rather than eliminate the revenue. If the original revenue solely from the sale price, then the principle of abundance, we try to find revenue from other sources. Some of the existing business models are:

Direct Cross-Subsidy
This first generation model. Revenue from other sources provide a cross subsidy for items that deliberately lost. For example, free phone, but pay talktime. Free antenna dish, pay subscription fees. Free software, pay for hardware. Etc.. Including a business model that is used to distribute Canonical Ubuntu Linux operating system for free. His software is free, but if the company then needed consulting services, training and implementation of the official Ubuntu Canonical, the company must pay dearly.

Third Party subsidy
This business model used by Radio, TV and Magazines Free. Customer free, but paid advertiser. It is used by publishers to eliminate credit card fees, but provides an expensive charge to the merchant. Disco is also a pioneer of this model through the "ladies night". Free to visitors of women, but male guests pay.

Freemium
This model is often used by companies and information technology consultant. Free for a generic version, but pay for premium versions. Can also be varied with the module. Limited to the module for free, a more complete module pay. Free for the initial consultation, pay for consulting services more complete. Free to overview seminar, pay for a more complete training.

Nonmonetary
This is 100% free. Services provided entirely free of charge. Remuneration as service provider is the attention and reputation. And with a growing reputation, was known everywhere, many things can be done to bring in revenue. Musicians who provide work for free and gain a reputation and attention, can generate revenue from the concerts or her merchandise sales.

Before you eliminate Jualan
Okay ... okay, maybe it sounds scary to eliminate still just selling you. There are some things that must be considered before you eliminate your sales:

First, Adjust the business model imaginable today. You have a good analysis of where your revenue sources. Generally eliminate your sales revenue is intended to enlarge, not reduce revenue. If you're selling clothes and distributing just your latest product, it's hard to imagine to get a bigger revenue. But if you are member subsidies on accessories and distribute free of charge as a gimmick to gain more customers, make more sense. Or maybe that was digratiskan catalog, newsletter or booklet on how to utilize the most of your product.

Second, free will be effective if its mass, involving a large crowd. Because the cost has been set, the greater the customer involved, the cost per customer would be getting smaller until almost zero. Distributing free software to 100 people or 1 million people will be very different. So Canonical with its Ubuntu diligently sending free CDs. Existence in the digital economy of our products in the market will depend on the attention and reputation. Free is a weapon to achieve these two things.

I closed the open along with a senior businessman I mentioned before with great satisfaction. He told the details "secret recipe" IT services eliminate him, and still get revenue from somewhere else. Before we parted, he uttered the phrase: "Oh yes, if everything is free, free even so ancient. Customers should not have to pay, instead get paid! "Whoa .... (FR)

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